His $30.7 million average annual value surpasses Roger Clemens' $28 million, one-year deal with the Yankees in 2007 and Alex Rodriguez's $27.5 million in his $275 million, 10-year deal signed with the Yankees prior to the 2008 season.

It also eclipses the largest deals given to a pitcher by far, passing the $180 million deal the Tigers gave Justin Verlander just last year.

Kershaw went 16-9, 1.83 with 232 strikeouts in 236 innings in 2013 and won the National League Cy Young Award. He also won the Cy Young in 2011 and finished second to R.A. Dickey in 2012.

A three-time All-Star, Kershaw has major league record of 77-46 with an ERA of 2.60.

In an interview with the Los Angeles Times, team president Stan Kasten didn't confirm the deal, but said, "I'm hopeful that by the deadline Friday morning we can work something out," referring to Friday's deadline for teams and players to exchange arbitration figures.

The Dodgers are expected to bid heavily for Masahiro Tanaka, but it's unclear what impact the money given to Kershaw will have on that plan.